Sweepstakes Casino Shake-Up: ARB Interactive Founder Works With States to Draft Sweepstakes Modernization Act

As states’ regulators work overtime to polish their bills regulating sweepstakes casino games, a few industry insiders are silently working to deliver a counter-punch. Patrick Fechtmeyer, founder of ARB Interactive, shared that he’s working with the state legislatures to draft the Sweepstakes Modernization Act “in the coming weeks and months.” 

In a Medium post shared last January 6th, the Modo.us founder expressed his frustrations with the current sweeps landscape and offered a few suggestions.

“Well-intentioned regulations”, he says, often miss how the digital market works. In the case of sweepstakes casinos, banning them doesn’t remove demand, but pushes them to less regulated and less safe platforms.

Is Rational Digital Governance the Key?

2025 has been hard for the sweepstakes casino industry, both for small and bigger companies like ARB Interactive. California banned sweepstakes casino games effective January 1st, and New York followed, shrinking the market for these popular leisure activities. For critics, these new regulations aren’t perfect and miss out on the true nature of digital entertainment.

In the same Medium post, Fechtmeyer highlights the need for a rational response to sweepstakes casinos. He argued that the goal is not to suppress or ignore the players’ behavior, but to manage it rationally. Fechtmeyer calls it “rational digital governance”, and he’s now calling for the drafting of the Sweepstakes Modernization Act.

At its core, the planned Act aims to enable clear regulatory oversight with consumer protections, with fair taxation and enforcement procedures that adapt to digital realities.

A Clearer and More Responsive Sweepstakes Casino Framework Up Ahead

Fechtmeyer offers a snapshot into what players, operators, and regulators can expect from this planned bill:

• Clear-cut guidelines for prize redemptions and entry
• Prize protection protocol
• Mandatory players’ age verification with responsible gambling tools
• Transparent tools for operators, including data protection and audits
• State-level taxation policies

For Fechtmeyer, the proposed Act is the most rational way forward. He explained that consumers are using these games, and responsible operators are offering a clear path on how to navigate the tricky waters of taxation, consumer safety, and responsible gambling.

As of this writing, no state regulators have issued statements or comments on Mr Fechtmeyer’s post.

REFERENCES:

• Fechtmeyer’s Medium post